Stephan E. Hornung

Partner

Stephan E. Hornung represents financial institutions and other creditors in state, federal, and bankruptcy courts across the United States. He has a deep background in complex litigation involving the enforcement of creditors’ rights, state and federal court receiverships, and Chapter 7 and Chapter 11 proceedings. Stephan defends claims asserted by borrowers, investors, bankruptcy trustees, and litigation trustees, including claims for “lender liability,” breach of contract, and fraudulent transfer and other avoidance actions. Stephan also regularly represents financial institutions in connection with non-judicial foreclosures, UCC sales, and out-of-court workouts and restructurings.

Extended Profile

Stephan represents clients in matters across numerous industries, including financial services, entertainment, real estate, energy, hospitality, healthcare, aviation, hemp processing, and precious metals. Prior to joining Morgan Lewis, Stephan was a partner in another national law firm’s bankruptcy and restructuring and litigation practice groups; prior to that he was a partner at a boutique creditors’ rights firm in New York City.

Selected Representations

Served as counsel to eight secured lenders in the Chapter 11 proceeding of Miami Metals I Inc. (f/k/a Republic Metals Refining Corporation) in multi-party litigation with more than 45 of the debtors’ former customers who claimed ownership of the debtors’ precious metals inventory
Served as counsel to a secured lender in state and bankruptcy court litigation against a failed hemp processor, including negotiation of the subsequent sale of substantially all of the hemp processor’s assets, and successful defense of three appeals before the Kentucky Court of Appeals
Served as special counsel to the Financial Oversight and Management Board for Puerto Rico in lift-stay and related litigation in the US District Court for the District of Puerto Rico and in the US Court of Appeals for the First Circuit, and in connection with conflict issues, from the Board’s inception in 2016 through the confirmation of Puerto Rico’s plan of arrangement in 2022
Served as counsel to secured lenders and equipment lessors in state and federal court receiverships in Arizona, Illinois, New York, New Jersey, and Kentucky
Served as counsel to a financial institution in a breach of contract action brought by the estate of a former executive
Represented a financial institution serving as owner trustee in a breach of contract action brought by holders of residential mortgage-backed securities issued by 15 Delaware statutory trusts
Served as counsel to a financial institution serving as owner trustee in multiple litigations in New York and Delaware arising out of student loan securitizations
Served as counsel to the Chapter 11 trustee of Fletcher International Ltd., a master fund that was part of a complex master-feeder fund structure, including an extensive investigation of the fund’s asset manager, preparation of the trustee’s report, and confirmation of a liquidating plan
Served as counsel to a multimedia company in connection with multiple claims in The Weinstein Company LLC’s Chapter 11 bankruptcy in Delaware and in connection with asset sales in other entertainment industry bankruptcies
Served as counsel to investors in and the manager of a large fuel distribution and gas station management company in hotly contested Chapter 11 proceedings commenced by an investor-dealer
Served as counsel to creditors in Chapter 11 bankruptcies across the United States, including Vice Media LLC, Party City Holdings Inc., Black News Channel LLC, Frontier Communications Corporation, Global Eagle Entertainment Inc., Cinemex USA Real Estate Holdings Inc., iPic-Gold Class Entertainment LLC, Sears Holdings Corporation, Rdio Inc., Open Road Films LLC, AOG Entertainment Inc., Republic Airways Holdings Inc., iHeart Media Inc., Toys “R” Us Inc., and Relativity Media LLC
Served as counsel to defendants in avoidance actions threatened or commenced in the Sizmek Inc., Abeinsa Holdings Inc., Maxus Energy Corporation, and ITT Educational Services Inc. bankruptcies
Served as counsel to a financial institution in multiple litigations arising out of a $20 million check-kiting scheme and subsequent Chapter 7 bankruptcy
Served as counsel to a financial institution defendant in a fraudulent conveyance action arising out of a Ponzi scheme
Served as counsel to a financial institution defendant in a subprime “put back” litigation brought by monoline insurer CIFG
Served as counsel to a financial institution in litigation involving the failed securitization of a $300 million warehouse line of credit secured by 51 real estate loans and, following the successful litigation, in the workout of all 51 loans, including subsequent litigation in various jurisdictions across the United States
Served as counsel to a financial institution in litigation over the liquidation of a municipal bond portfolio securing a $500 million revolving credit facility

Education

St. John's University School of Law, 2007, J.D., cum laude
Colgate University, 2003, B.A.

Admissions

New York
New Jersey
US Court of Appeals for the First Circuit
US Court of Appeals for the Second Circuit
US Court of Appeals for the Third Circuit
US District Court for the Eastern District of New York
US District Court for the Northern District of New York
US District Court for the Southern District of New York
US District Court for the District of New Jersey

Awards and Affiliations

Recognized, Business Litigation, Super Lawyers (2020–2023)
Member, American Bankruptcy Institute
Member, New York City Bar Association